Target to match rival's online prices all year

SaabiraChaudhuri

Target Corp.
TGT, +0.07%
will match the online prices of some its rival retailers year round, extending a policy it started in October.

Target said Tuesday it would match prices at Amazon.com, Walmart.com, BestBuy.com and Toysrus.com, including Babiesrus.com. The company said its stores will also match prices found on Target.com.

In October, the Minneapolis-based retailer said it would match prices from these online retailers between Nov. 1 and Dec. 16. Target introduced its first price match policy in 2009.

The new year-round policy, which takes effect immediately, will combine Target's previous price adjustment and competitor advertisement policies into one price matching policy. If a customer buys a qualifying item at a Target store and then finds the identical item for less in the following week's Target circular or within seven days on Target.com, Amazon.com, Walmart.com, Bestbuy.com, Toysrus.com or in a local competitor's printed ad, Target will match the price.

The price match can be requested prior to a purchase with proof of current price or by bringing the original Target receipt and proof of current price.

Last year, Chief Executive Gregg Steinhafel said he wasn't concerned that price-matching would dent the company's profit margins, noting that the move "gives our guests the ability to know 'I can do all of my one-stop shopping in Target.'"

Target, the U.S.' second-largest retailer by sales behind Wal-Mart Stores Inc. (WMT), has been searching for ways to increase sales as many of its core lower-income shoppers remain extremely cautious with spending amid the lagging economy. The company has added fresh food to many stores, among other things.

Earlier this month, Target warned its fiscal fourth-quarter earnings will meet or somewhat exceed the low end of its prior guidance as December sales were slightly below expectations. It said strong results late in the month didn't completely offset softness in the first three weeks.

Shares closed Monday at $61.30 and were inactive in recent premarket trading. The stock has risen 25% in the past 12 months.

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